Question

Which of the following statement is CORRECT in relation to Non-Profit making companies registered under Section 8 of the Companies Act, 2013?
(I) Non-profit making companies registered can pay 10% of their surplus as dividend on approval of central government.
(II) A firm may be a member of the non-profit making companies.
(Ill) Non-profit making companies registered cannot convert itself into company of any other kind.
(IV) Non-profit making company has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object.
Select the correct the answer from the options given below-

• A. (II) & (IV) of the above
• B. (I), (II) & (IV) of the above
• C. (I), (II) & (III) of the above
• D. (I), (II), (III) & (IV) of the above

Answer 1

Answer: (A)

(II) & (IV) of the above

Where it is proved to the satisfaction of the Central Government that a person or an association of persons proposed to be registered under this Act as a limited company has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object; the Central Government may, by licence issued in such manner as may be prescribed, and on such conditions as it deems fit, allow that person or association of persons to be registered. As per section 8 (3), A firm may be a member of the company registered under this section.